Solihull-based Aga Rangemaster (AGA) has said it expects its first-half underlying trading results to be broadly in line with 2007.
The cooker company, which has changed its name after disposing of its Foodservice operation, said its balance sheet remained strong with sales up five per cent over the same period last year.
The interim results, to be published on August 29, will contain details of the company’s reorganisation plans and the costs associated with this will be listed as an exceptional item.
The company has been badly hit by the decline in the housing sector and needs to make savings.
In its statement, the company said: “These initiatives will help mitigate the impact of the challenging trading conditions which are making achieving demonstrable progress against the group’s performance targets difficult.”
Aga said its revenues had grown in the first half, supported by a strong marketing programme, and it continued to invest in the development of the Aga and Rayburn products.
The group also said it was taking action to rationalise its operations in Ireland, where the market has deteriorated materially.
This rationalisation programme had a significant impact on the first half, it added.
It has also completed its £140 million cash return to shareholders following the sale of the Foodservice operation and by the end of June had arranged further bank facilities.
Aga also confirmed that Rangemaster would be consolidating its distribution at a newly leased facility a mile from its Leamington Spa factory and this would also be the group’s new commercial centre.
In addition, it also confirmed that a new factory manufacturing its Marvel under-counter refrigerators would open in Michigan early next year.
Chief executive William McGrath said: “Overall, our wide range of consumer brands are proving resilient. Our marketing programmes, in support of our strong brands, are backed by product development initiatives. This will reinforce the relevance of our well differentiated products to consumers.
“With efficient manufacturing and well established distribution structures, the potential for the group remains strong although we are mindful of the current economic climate we are facing.”
